Based on these assessments provided by Warr (1987), there is a strong linkage between unemployment and mental health.
Indeed, Murphy and Athanasou (1999) conducted a meta-analysis of longitudinal studies examining how employment affects one’s mental health.
The results revealed an average correlation coefficient of .54 between gaining employment and improved mental well-being, and an average correlation of .36 between losing employment and decreased mental health.
Work provides a sense of meaning and purpose to life, and the removal of that purpose lowers the quality of life.